Albertsons seeks billions from Kroger over failed merger

Albertsons is seeking approximately $8 billion to $9 billion in damages from Kroger following the collapse of their proposed $24.6 billion merger. According to filings in the Delaware Court of Chancery, the demand includes a $600 million break-up fee and compensation for shareholder losses.

Albertsons alleges that Kroger failed to work in good faith to secure regulatory approval, claiming that Kroger intentionally breached their 2022 merger agreement. The planned combination of the two largest U.S. grocery chains was blocked by a federal court in December 2024.

Kroger has contested the claim, filing its own legal response stating that Albertsons is not entitled to the damages. Kroger argues that Albertsons' own conduct undermined efforts to win necessary regulatory approvals. A two-week trial is scheduled to take place later this month to determine liability for the failed transaction.